Sunday Recommend: Path to Ride-Share Profits Begins With Higher Prices

What I learned

  • Reasoning based on data, and it’s hard to argue with – this is a skill I need to learn.
  • Driving for Uber or Lyft will be a minimum wage job because there are always drivers coming in to fill the roles when the earnings rise, driving down earnings.
    • Drivers will leave when the wages get to minimum wage

Drivers are 4 times more price sensitive than riders, a resonable guess is that 80 percent of the price burden will fall on passengers, 20 percent on drivers.

 

Tony Tam (Li Zhi)

Senior Principal Engineer @ Splunk, ImpactfulEngineer.org & SFBadminton.org